SAN FRANCISCO (AP) — Electric car maker Tesla Motors is offering to buy solar panel maker SolarCity for up to $2.8 billion in an attempt to create a one-stop shop for cleaner energy as consumers become more concerned about fossil fuels hurting the environment.
The all-stock deal announced Tuesday values SolarCity Corp. at $26.50 to $28.50 per share, depending on a review of the company's books.
SolarCity's stock surged $3.60, or 17 percent, to $24.79 while Tesla's shares sank $25.61, or 12 percent, to $194.
The deal still requires shareholder approval. That process could be complicated by Tesla CEO Elon Musk's position as SolarCity's chairman and largest individual shareholder. SolarCity's CEO, Lyndon Rive, is also Musk's cousin.
Tesla is pursuing SolarCity 14 months after introducing a home battery system that stores solar energy.